UTAR.ME WACC - Weighted Average Cost of Capital

The WACC of Aviakompaniya UTair PAO (UTAR.ME) is 17.0%.

The Cost of Equity of Aviakompaniya UTair PAO (UTAR.ME) is 20.55%.

The Cost of Debt of Aviakompaniya UTair PAO (UTAR.ME) is 13.05%.

	Range	Selected
Cost of equity	19.50% - 21.60%	20.55%
Tax rate	21.10% - 21.80%	21.45%
Cost of debt	5.10% - 21.00%	13.05%
WACC	14.1% - 19.8%	17.0%

WACC

UTAR.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.32	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.50%	21.60%

Tax rate	21.10%	21.80%
Debt/Equity ratio	0.54	0.54
Cost of debt	5.10%	21.00%

After-tax WACC	14.1%	19.8%


Selected WACC	17.0%

UTAR.ME's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for UTAR.ME:

cost_of_equity (20.55%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.32) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.